Will being first to market give you an advantage?

Sometimes local shops are ahead of the game when it comes to shopper trends. And sometimes they are not. As a general rule, people don’t expect to be marketed to by independent shopkeepers. But there are many exceptions.

This column is for the exceptions: Those retailers who are always searching for great products to share with their shoppers. But it is also a challenge for those who don’t push the boundaries of their assortment of products.

Mike Brehme is an entrepreneur that I had never heard of until last month. He spent 23 years building up the tea brand Clipper to sales of £50 million before he sold it in 2007. Along the way he pioneered the UK market for green tea, Fairtrade tea, and organic hot drinks including herbal and fruit infusions.

For most of the time since he sold Clipper he has been working on a new product, a hot drink that is not tea or coffee and that will sell better than fruit teas. This spring, in London, he unveiled FruitBroo, a range of “insanely tasty hot drinks”.

The consumer he has in mind is young and female. She is looking for a drink after lunchtime that has no caffeine and few calories. At home, in her cupboard she will have a collection of packets of fruit teas, rarely replenished. For coffee shops, FruitBroo offers an extra products for afternoons. If you have a hot water machine in your shop, then you should consider his products, suggests Mr Brehme.

Which retailers does he think should stock it? If you only have two facings of big brand tea, you are excused. But if you have a range of teas, including fruit and mint teas, then his tiny bottles could be perfect, offering 25 per cent margins on a selling price of between £2 and £2.50 (VAT is involved).

Mr Brehme believes in this product enough to be the sole investor. He has a factory making FruitBroo in Bristol. He has a consumer marketing plan, built around sampling and pop ups at events. He is seeking a listing from wholesalers and in the major grocers.

But for you, he is prepared to give you free-stock to get you started and supply direct. “My aim is to get discovery and sharing,” he says. His company gives the impression of being a start-up, willing to try anything that will work.

How long will it take to get to £50 million sales this time? Two years, Mr Brehme replies.

But what will stop Starbucks from copying it? Nothing, Mr Brehme says. And he shares one of his lessons from Clipper, when Twinings launched its versions of his products. That is the end of the business, he thought. But he was mentored not to think that way and he found that his first mover advantage and his reputation for quality with consumers counted.

Quality and passion matter. If you value his values, then you might consider giving FruitBroo a listing. Email me if you want me to forward your details to him.

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